Parker Hannifin : Q3 2026 Parker Hannifin Corp. Earnings Conference Call Presentation

Published: 2026-04-30 08:29:29 ET PH

Published on 04/30/2026 at 08:29 am EDT

Fiscal 2026 Third Quarter Earnings Presentation

April 30, 2026

Record Performance Enabled by the Strength of Our Portfolio

FY26 Q3 Highlights

$5.5B

Sales

+10.6% Reported

+6.5% Organic1

12%

Reduction in Recordable Incident Rate

Top quartile safety performance

Record sales of $5.5B, +6.5% organic growth1

27.2%

Adjusted EBITDA Margin1

+20 bps

26.7%

Adjusted Segment Operating Margin1

+40 bps

Record adjusted segment operating margin1 of 26.7%

Record adjusted earnings per share1 of $8.17

Orders +9% and record backlog of $12.5B

$2.6B

YTD CFOA

18%

Adjusted EPS Growth1

Progress continues on Filtration Group acquisition

Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations.

Note: FY26 Q3 As Reported: Segment Operating Margin of 23.4%, EBITDA Margin of 26.5%, Net Income of $904M, EPS of $7.06, a decrease of 4%. 3

Why We Win

Strong Competitive Advantages

Parker's

Business System

Innovative Products

Application Engineering

Interconnected Technologies

Distribution Network

Decentralized structure, strategic positioning & operational excellence

Deep customer partnership to uncover unmet needs

Technical expertise creates competitive advantage

Enables comprehensive solutions for customers

Serving global aftermarket & small to mid-sized OEMs

#1 Position in Motion & Control Industry

Focused Portfolio Creating Distinct Value for Customers Across Market Verticals

~$21B FY26G Sales

HVAC/R 4%

Other 6%

Interconnected technologies and solutions

Energy 7% Aerospace &

Defense 35%

A Technology

across market verticals

2/3s of our sales come from customers who buy 4 or more technologies

Off Highway 13%

Powerhouse of Interconnected Solutions

Growth focused on faster growing, longer cycle markets and secular trends

Transportation 15%

In-plant & Industrial Equipment 20%

Aerospace & Defense Market Vertical

Trusted Partner Helping to Shape the Future of Flight

Sales by Platform1

Sales by Market Segment1

Leading Commercial Programs

Regional Transport

Helicopters

Energy & Other

Commercial

Transport

Defense

A220

G400/500/600

737

A320

G650/700/800

777

A350

ERJ-175/195 E1

787

Praetor 500/600

Commercial

Business Jets

~35% of Sales

Leading Defense Programs

1. FY25 Parker sales

F-15 F-16 F-35

F/A-18

Black Hawk Apache Typhoon CH-47

Transportation Market Vertical

Interconnected Technologies and Engineering Expertise

Marine

Sales by Platform1

Rail Heavy Truck

~15% of Sales

Competitive Advantages

Comprehensive offering of differentiated solutions

Energy agnostic to meet changing customer needs

Improving reliability, safety & fuel efficiency

Robust aftermarket channel

Positioned for OEM growth

Automotive

1. FY25 Parker sales

Innovative and specified products

Motion Systems

Flow & Process Control

FY26 Q3 Financial Summary

Another Quarter of Record Performance

$ Millions, except per share amounts FY26 Q3 As Reported

Sales $5,486

Segment Operating Margin 23.4%

EBITDA Margin 26.5%

Net Income $904

EPS $7.06

FY26 Q3

Adjusted¹

FY25 Q3

Adjusted¹

$4,960 26.3%

27.0%

$904

$6.94

YoY Change Adjusted¹

+11%

+40 bps

+20 bps

+16%

+18%

1. Sales figures As Reported. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations.

Note: FY25 Q3 As Reported: Segment Operating Margin of 23.2%, EBITDA Margin of 26.5%, Net Income of $961M, EPS of $7.37. 9

FY26 Q3 Adjusted Earnings per Share Bridge

$0.18

$0.14

$0.96

($0.02)

($0.03)

$6.94

$8.17

FY25 Q3

Segment

Income

Interest

Corporate

FY26 Q3

Adjusted

EPS¹

Operating

Income

Tax

Count

Expense

& Other

Adjusted

EPS¹

1. FY25 Q3 As Reported EPS of $7.37. FY26 Q3 As Reported EPS of $7.06. Includes certain non-GAAP adjustments and financial measures. See Appendix for additional

details and reconciliations. 10

FY26 Q3 Segment Performance

Sales

As Reported $ Organic %1

Segment Operating Margin

As Reported

Segment Operating Margin

Adjusted1

Order Rates2

Commentary

Diversified Industrial

North America Businesses

$2,141M

+2.8% Organic

22.6%

25.3%

+10 bps YoY

+7%

Record adjusted segment operating margin

Organic growth driven by in-plant, off-highway & energy

Order rates remain strong at 7%

International Businesses

$1,531M

+3.3% Organic

22.3%

25.3%

+20 bps YoY

+6%

Record sales led by APAC with +10% organic growth

Record adjusted segment operating margin

Order rates at 6% from electronics and defense

Aerospace Systems

$1,814M

+14.2% Organic

25.2%

29.5%

+80 bps YoY

+14%

Record sales: +22% commercial OEM, +14% aftermarket

Record adjusted segment operating margin

Order rates at 14%; DD growth for OEM and aftermarket

Parker

$5,486M

+6.5% Organic

23.4%

26.7%

+40 bps YoY

+9%

Record sales with 6.5% organic growth

Record adjusted segment operating margin

Backlog increased to a record $12.5 billion

Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations.

All comparisons are at constant currency exchange rates, with the prior year quarter restated to the current-year rates and exclude previously completed divestitures. Diversified 11

Industrial orders are rolling 3-month average computations and Aerospace Systems are rolling 12-month average computations.

FY26 Q3 YTD Cash Flow Performance

Cash Flow Highlights

16.7%

Cash Flow from Operations Margin

$2.6B

Cash Flow from Operations

$2.00 declared April 23, 2026

70 fiscal years of increasing annual

dividend per share paid

14.9%

Free Cash Flow Margin1

$2.3B

Free Cash Flow1

Cash Flow from Operations

Free Cash Flow1

14.9%

$825M

YTD Share Repurchases2

$2.3B

15.8%

16.7%

$2.6B

FY25 FY26

Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations.

Includes discretionary and 10b5-1 share repurchases.

% to sales

FY25 FY26

$2.0B

13.7%

$2.3B

FY26 Market Vertical Growth Guidance

Key Market Verticals

% of Sales1

Commentary

Previous FY26

Guidance2

Current FY26

Guidance2

Aerospace & Defense

~35%

Progress continues on increasing commercial transport build rates

Aftermarket remains strong due to fleet age

~11%

~12%

In-Plant & Industrial

~20%

Quoting activity strong and selective capital spending continues

Distributor inventories stable and ordering to demand

LSD

Transportation

~15%

Heavy truck improving as orders increase

Global auto production demand challenges persist

(MSD)

(LSD)

Off-Highway

~13%

Construction growth from capital and infrastructure investment

Ag remains under pressure

LSD

Energy

~7%

Power gen strength with increased global power requirements

Midstream Oil & Gas growth continues offset by upstream

LSD

HVAC/R

~4%

Strength in commercial HVAC/R, filtration and aftermarket

MSD

% of sales as of FY25

Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations.

Increasing Organic Sales Growth Guidance from 5% to 5.5%

FY26 Guidance Update

EPS: $27.10 As Reported, $31.20 Adjusted

Guidance Metric

Reported Sales Growth

Previous FY26 Full Year Range

Current FY26 Full Year

Full Year Assumptions

FY26 Q4

5.5% - 7.5%

~7%

~5.5%

Organic Sales Growth1

4% - 6%

~5.5%

~4%

Adj. Operating Margin1

27.0% - 27.4%

~27.2%

~27.4%

Adj. EPS 1

$30.40 - $31.00

$31.20

$8.16

Free Cash Flow1

$3.2B - $3.6B

$3.3B - $3.6B

- -

Currency favorable ~1.5%

Acquisitions ~1%; Divestitures ~(1%)

Split: 1H: 48% | 2H: 52%

~12% Aerospace organic growth

~2.5% Industrial North America organic growth

~2.5% Industrial International organic growth

110 bps margin expansion

~40% incremental margin

2H Tax rate: ~21%

Split: 1H: 48% | 2H: 52%

CapEx: ~2% - 2.5% of sales

~100% FCF Conversion

Includes certain non-GAAP adjustments and financial measures. See Appendix for additional details and reconciliations.

What Drives Parker

Safety, Engagement, Ownership

Living up to Our Purpose

Top Quartile Performance

Great Generators & Deployers of Cash

FY26 Q4 Earnings Release August 6, 2026

FY27 Q1 Earnings Release November 5, 2026

Appendix

FY26 Guidance Details

Reconciliation of Q3 Organic Growth

Adjusted Amounts Reconciliation - Q3 Consolidated Statement of Income

Adjusted Amounts Reconciliation - Q3 Segment Operating Income

Reconciliation of EBITDA to Adjusted EBITDA

Reconciliation of Operating Cash Flow Margin and Free Cash Flow Margin

Supplemental Sales Information

Reconciliation of FY26 Q4 Guidance

Current Reconciliation of FY26 Guidance

Previous Reconciliation of FY26 Guidance (from January 29, 2026)

FY26 Guidance Details

Sales Growth vs. Prior Year

As Reported

Organic1

Diversified Industrial Segment

North America Businesses

~2.5%

International Businesses

~7.5%

~2.5%

Aerospace Systems Segment

~13%

~12%

Parker

~7%

~5.5%

Additional Items

As Reported

Corporate G&A

~$210M

Interest Expense

~$405M

Other (Income) Expense

~$85M

Tax Rate

~21%

Diluted Shares Outstanding

~128M

Segment Operating Margins

As Reported

Adjusted1

Diversified Industrial Segment

North America Businesses

~23.5%

~26.1%

International Businesses

~22.7%

~25.4%

Aerospace Systems Segment

~25.4%

~29.9%

Parker

~23.9%

~27.2%

Detail of Pre-Tax Adjustments to:

Segment Margins

Below Segment2

Acquired Intangible Asset Amortization

~$585M

Business Realignment

~$70M

Integration Costs to Achieve

~$15M

Acquisition Related Expenses

~$12M

~$23M

Gain on Insurance Recoveries

~($20M)

Earnings Per Share

As Reported

Adjusted1

EPS

~$27.10

~$31.20

Includes certain non-GAAP adjustments and financial measures.

Expenses incurred to date. 19

Reconciliation of Q3 Organic Growth

Quarter-to-Date

Disclaimer

Parker Hannifin Corporation published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 12:28 UTC.